European Union’s Carbon Tax May Hurt Metal Exports

The European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) will not only disrupt global trade but also have a negligible impact on climate, according to a report released by Global Trade Research Initiative (GTRI).
The carbon tax is also expected to pose a significant challenge to India’s metal industry. As much as 27 per cent of India’s iron, steel, and aluminium exports worth $8.2 billion went to the EU in 2022, the think tank said. Electricity, fertiliser, hydrogen, and cement will also attract carbon tax, but in this case, India will not be affected as it does not export these products to the EU.